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Page 13 of 14 |
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Another driver claims I rear-ended him on purpose. Now my insurance company says they are "reserving their rights." What does that mean? |
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When an insurance company says it is "reserving rights", the company will still defend you in a car accident lawsuit, but it may not cover all of the claims. It's not a denial of coverage, yet. The statement amounts to a warning the company may deny coverage for one or more claims later on. The insurance company must still investigate every claim and deal with you fairly.
For example, your car insurance policy usually does not cover intentional or deliberate acts. If the other driver claims you rear-ended his car on purpose, this will probably trigger a “reservation of rights” notice. The company notifies you it will handle your claim during investigation, but it reserves rights to refuse coverage if the investigation finds you did intentionally hit the car. You will then have to pay the claim yourself. An experienced car accident attorney can help. |
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